Welcome!

.NET Authors: Jayaram Krishnaswamy, Sematext Blog, ITinvolve Blog, Aditya Banerjee, Pat Romanski

News Feed Item

Yellow Media Limited Reports Full Year and Fourth Quarter 2013 Financial Results

MONTREAL, QUEBEC -- (Marketwired) -- 02/13/14 -- Yellow Media Limited (TSX: Y)


--  2013 full year digital revenues grow 10.6% year-over-year to reach
    $406.3 million. For the fourth quarter of 2013, digital revenues
    represented 45.1% of total revenues

--  Strong adoption of our digital products and services, as advertiser
    penetration of the Yellow Pages 360 degrees Solution increases to 27.1%
    as at December 31, 2013 compared to 16.5% last year

--  2013 free cash flow grows 38.4% year-over-year to reach $274.6 million.
    The Company further strengthens its balance sheet, reducing net debt by
    32% to $533.1 million as at December 31, 2013 compared to $781.7 million
    last year

--  Company records net earnings of $176.5 million in 2013, which compares
    to net earnings of $182.4 million in 2012 before impairment charges and
    gain on settlement of debt

Yellow Media Limited (TSX: Y) (the "Company") releases full year and fourth quarter 2013 operational and financial results, ending the first phase of digital transformation with continued digital revenue growth and a strengthened capital structure. Yellow Media, a Canadian digital media company, champions the neighbourhood economy by fostering strong business relationships between local businesses and consumers.

Full Year 2013 Financial Results

Revenues in 2013 decreased to $971.8 million, representing a 12.3% year-over-year decline. On a comparable basis, when adjusting for the discontinuation of Canpages directories in 2012, revenues decreased by 10.7% versus last year's results. This decrease is primarily impacted by lower print revenues, as larger advertisers reduce their print advertising spend, alongside a lower advertiser count among smaller, low-spend advertisers.

Digital revenues in 2013 increased 10.6% to $406.3 million, as compared to $367.2 million last year. On a comparable basis, when adjusting for the discontinuation of Canpages directories in 2012, digital revenues grew 12.5% year-over-year. Growth in digital revenues is mainly due to the active migration of traditional media advertisers towards digital products and services and continued adoption of the Yellow Pages™ 360 degrees Solution across Yellow Pages Group's ("YPG's") sales channels.

As at December 31, 2013, the penetration of the Yellow Pages 360 degrees Solution offering among YPG's advertiser base, which is defined as advertisers who purchase three product categories or more, grew to 27.1%. This compares to 16.5% at the end of the same period last year.

Print revenues declined steadily to reach $565.4 million during 2013, decreasing 23.6% compared to the same period in 2012, as expected.

EBITDA declined to $416.1 million in 2013, as compared to $569.4 million the year prior. The EBITDA margin in 2013 decreased to 42.8% versus 51.4% in 2012, primarily due to revenue pressure, a change in product mix and investments required to advance the Company's digital transformation.

For the year ending December 31, 2013, the Company recorded net earnings of $176.5 million. This compares to a $2 billion net loss for the same period last year. In 2012, the Company recorded an impairment charge of $3.3 billion on its goodwill, and certain of its intangible assets and property, plant and equipment, as well as a gain on settlement of debt of $978.6 million pursuant to its recapitalization. When adjusting for the impairment charge and gain on settlement of debt, the Company recorded net earnings of $182.4 million in 2012. This decrease is due primarily to lower EBITDA, partly offset by lower financial charges, a lower depreciation and amortization expense, and lower restructuring and special charges.

For the year ending December 31, 2013, the Company recorded basic earnings per share of $6.34, which compares to basic earnings per share of $5.76 in 2012 before the impairment charge and gain on settlement of debt.

Free cash flow in 2013 increased to $274.6 million, which compares to $198.3 million in 2012. The increase in free cash flow is attributable to a favourable change in working capital, lower interest and income taxes paid and lower restructuring and special charges, partly offset by higher capital expenditures and lower EBITDA. Capital expenditures in 2013 totaled $66.1 million, up from $40.2 million last year.

"2013 marked the completion of Yellow Media's first phase of digital transformation, where we made significant investments to strengthen our digital foundation," said Ginette Maille, Chief Financial Officer of Yellow Media. "The Company will continue investing in its digital transformation in 2014, while also executing projects that improve the efficiency of the organization and support long-term profitability."

As at December 31, 2013, Yellow Media had reduced net debt to $533.1 million. This compares to $781.7 million of net debt as at December 31, 2012. In 2013, the Company repaid $153.4 million of its 9.25% Senior Secured Notes, exceeding the minimum mandatory requirement of $100 million.

Fourth Quarter 2013 Financial Results

Revenues for the fourth quarter ended December 31, 2013 decreased 10% to $238 million, compared to $264.4 million in the last quarter of 2012.

Digital revenues for the fourth quarter ended December 31, 2013 grew 7.7% to $107.4 million, compared to $99.7 million for the same period last year.

Digital revenues represented 45.1% of total revenues during the fourth quarter of 2013, up from 37.7% during the same period in 2012. Print revenues declined steadily to reach $130.6 million during the fourth quarter of 2013, decreasing 20.7% compared to the same period in 2012.

EBITDA declined to $91.3 million during the fourth quarter of 2013, compared to $141.7 million the year prior.

The EBITDA margin decreased to 38.3% for the fourth quarter of 2013, compared to 53.6% for the same period last year. The EBITDA margin for the fourth quarter of 2013 was impacted by revenue pressure, a change in product mix, investments required to advance the Company's digital transformation, and non-recurring provisions related to a legal dispute and sales tax assessments. The EBITDA margin for the fourth quarter of 2012 was impacted by a non-cash benefit related to the amendment of our employees' pension and post-retirement benefit plans. Excluding these non-recurring elements, the EBITDA margin for the fourth quarter of 2013 decreased to 41.2%, compared to 48.0% for the same period last year on the same basis.

For the quarter ending December 31, 2013, the Company recorded net earnings of $31 million. This compares to net earnings of $821.9 million for the same period last year. During the fourth quarter of 2012, the Company recorded a $300 million impairment charge related to certain of its intangible assets and property, plant and equipment, as well as a gain on settlement of debt of $994.9 million pursuant to its recapitalization. When adjusting for the impairment charge and gain on settlement of debt, the Company recorded net earnings of $27.6 million in the fourth quarter of 2012. The increase is due primarily to lower financial charges and a lower provision for income taxes, partly offset by lower EBITDA.

For the quarter ending December 31, 2013, the Company recorded basic earnings per share of $1.11, which compares to basic earnings per share of $0.83 for the quarter ending December 31, 2012 before the impairment charge and gain on settlement of debt.

Free cash flow for the fourth quarter of 2013 increased to $74.2 million, compared to $48 million last year. This increase results from a favorable change in working capital and lower interest and income taxes paid, partly offset by lower EBITDA.

Operational Update

"Yellow Media is strongly positioned to proceed with the second phase of its digital transformation, and will make targeted strategic investments throughout 2014 to promote long-term revenue growth and profitability," said Julien Billot, President and Chief Executive Officer of Yellow Media. "We are currently conducting a full business review to guide our efforts and investments in the short-to-medium term. Our end goal is to grow Yellow Media into a sustainable local digital media company by extending the reach of our brand, attracting new digital audiences, better addressing our advertisers' needs and investing in our employees."

Strengthening our Brand Image


--  The Company extended its advertising campaign to promote the download
    and use of the Yellow Pages mobile application, targeting over 260,000
    millennials across university campuses in Toronto, Vancouver and
    Montreal.

--  YPG launched Shop The Neighbourhood™ across the Greater Toronto Area,
    an event buoyed by a multimedia campaign to promote local shopping and
    support small businesses. This initiative took place on November 30,
    2013, attracting over 1,800 local businesses and offering over 2,000
    exclusive deals across our digital properties. The campaign also
    garnered support from all levels of government and local celebrities.

--  The Company will continue developing national and local advertising
    campaigns throughout 2014 to increase brand awareness with both
    consumers and advertisers, as well as underscore the brand's digital
    transformation.

Enhancing our Properties to Reach an Increasing Number of Canadian Shoppers


--  YPG launched a ShopWise iPad application, alongside a new version of its
    mobile application, to help Canadians shop more efficiently through a
    digitally-responsive e-flyer experience and easier-to-find geo-localized
    deals and savings.

--  The Company continued to deploy its Online Merchant Management tool,
    which improves the quality, completeness and relevance of its content by
    eliminating all duplicate and stale business listings.

--  In 2014, the Company will continue developing accurate, reliable and
    enriched local content to strengthen the user experience, improve user
    engagement and boost the relevance of its digital properties. The
    Company will invest in key traffic and distribution partnerships to
    further expand its partner eco-system and grow local audiences.

Providing Advertisers with Valuable Digital Marketing Products and Services


--  Mobile priority placement remains the Company's fastest growing digital
    product offering, with advertiser penetration having increased to 14.9%
    as at December 31, 2013 compared to 8% at the end of the same period in
    2012.

--  YPG extended its value proposition to local businesses by providing them
    with presence across social media. YPG is now able to use advertisers'
    business content, which includes location, contact information, websites
    and images, to automatically generate and update basic Facebook®
    business pages.

--  The Company will provide advertisers with more comprehensive social
    media advertising campaigns in 2014. A new digital display advertising
    service will also be launched, and existing products and services will
    be repackaged into new offerings to enhance advertisers' digital
    presence and stimulate ROI.

Attracting and Retaining a Growing Number of Advertisers


--  Total advertiser count was 276,000 as at December 31, 2013, compared to
    309,000 at the end of the same period last year.

--  Advertiser acquisition for the twelve month period ended December 31,
    2013 stood at 13,600. Advertiser acquisition improved slightly versus
    the twelve month period ended September 30, 2013, where 11,900 new
    advertisers were acquired.

--  The Company will continue rolling out its national acquisition strategy
    throughout 2014. New programs, processes and technologies will also be
    implemented to help its sales channels find and attract new advertisers,
    enhance lead nurturing, and improve conversions.

Investing in its Employees


--  The Company has aligned its workforce with the realities of its digital
    transformation, transferring resources from its legacy operations
    towards its digital platform. In 2013, the Company hired approximately
    200 professionals within the domains of information technology and
    digital media.

--  The Company will continue investing in its workforce and anticipates
    hiring an additional 200 professionals within information technology and
    digital media in 2014. The Company will also invest in developing a
    stronger digital culture, offering training programs, tools and
    resources to elevate digital literacy and promote change management
    across all facets of the organization.

Investor Conference Call

Yellow Media Limited will hold an analyst and media call at 1:00 p.m. (Eastern Time) on February 13, 2014 to discuss the full year and fourth quarter 2013 results. The call may be accessed by dialing (416) 340-2218 within the Toronto area, or 1 866 225-2055 outside of Toronto.

The call will be simultaneously webcast on the Company's website at http://www.ypg.com/en/investors/financial-reports/2013/quarterly-reports/fourth-quarter-webcast

The conference call will be archived in the Investors section of the site at www.ypg.com.

A playback of the call can also be accessed from February 13 to February 20, 2014 by dialing (905) 694-9451 within the Toronto area, or 1 800 408-3053 outside Toronto.

The conference passcode is 4993633.

About Yellow Media Limited

Yellow Media Limited (TSX: Y) is a Canadian digital and print media company, offering businesses comprehensive media solutions to meet their key marketing objectives and providing consumers with platforms to access reliable local business information. By helping local businesses foster stronger relationships with their consumers through its various media, the Company encourages the growth of thriving neighbourhood economies. Yellow Media holds some of Canada's leading local search properties and publications including YellowPages.ca™, Canada411.ca and RedFlagDeals.com™, the Yellow Pages, ShopWise and RedFlagDeals mobile applications and Yellow Pages™ print directories. Its mobile applications for finding local businesses and deals have been downloaded over 6.5 million times and its online destinations reach 7.3 million unique visitors monthly. Yellow Media is also a leader in national digital advertising through Mediative, a division of Yellow Pages Group devoted to digital marketing and performance media services for national-scale agencies and advertisers. For more information, visit www.ypg.com.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the objectives, strategies, financial conditions, results of operations and businesses of the Company. These statements are forward-looking as they are based on our current expectations, as at February 13, 2014, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 6 of our February 13, 2014 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.


Financial Highlights
(in thousands of Canadian dollars - except share information)

----------------------------------------------------------------------------
                              For the three-month
                                    periods ended      For the years ended
                                     December 31,              December 31,
Yellow Media Limited              2013       2012         2013         2012
----------------------------------------------------------------------------

Revenues                      $237,951   $264,447     $971,761   $1,107,715
Income (loss) from
 operations                    $62,013  ($199,829)    $332,610  ($2,847,683)
Net earnings (loss)            $30,964   $821,850     $176,530  ($1,962,054)
Basic earnings (loss) per
 share attributable to
 common shareholders             $1.11     $29.24        $6.34      ($70.95)
Cash flow from operating
 activities                    $88,444    $61,749     $340,680     $238,573
----------------------------------------------------------------------------
EBITDA(1)                      $91,253   $141,677     $416,112     $569,380
EBITDA margin(1)                  38.3%      53.6%        42.8%        51.4%
----------------------------------------------------------------------------
Weighted average number of
 common shares outstanding  27,619,358 27,955,077   27,797,170   27,955,077
----------------------------------------------------------------------------

Non-IFRS Measures(1)

In order to provide a better understanding of the results, the Company uses the term EBITDA, defined as income from operations before depreciation and amortization, impairment of goodwill, intangible assets and property, plant and equipment, and restructuring and special charges. Management believes this measure is reflective of ongoing operations. This term is not a performance measure defined under IFRS. EBITDA does not have any standardized meaning and is therefore not likely to be comparable to similar measures used by other publicly traded companies. Management believes EBITDA to be an important measure.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...